<p>
  In this chapter, we derived an important relationship between the prices of European put and call options that have the same strike price and time to maturity by constructing two portfolios. Then we described the synthetic positions, a common concept which is always used in arbitrage trading strategies. Finally two simple arbitrage strategies conversion and reversal are demonstrated on QC platform to help you get a better understanding of how to implement algorithms with simple option mechanism.
</p>
<p>
  Next chapter we will dig into the famous option pricing model-Black Sholes Merton Model and discuss how to apply BSM in European options pricing.
</p>
